Under the amendments, only a participant dealer may provide DEA,
and DEA may not be provided to a client that is acting and
registered as a dealer with a securities regulatory authority. In
clarifying the type of entities that are excluded from
DEA access, the CSA state that the exclusion extends to
mutual fund dealers, scholarship plan dealers, exempt market
dealers and restricted dealers.
The amendments also require that, before providing DEA, a
participant dealer must (i) establish, maintain and apply
appropriate standards designed to manage associated
risks; (ii) enter into written agreements with
DEA clients; and (iii) satisfy itself that clients have
reasonable knowledge of applicable marketplace and regulatory
requirements and the dealer's standards. Further, on providing
DEA, participant dealers must ensure that clients
have unique DEA client identifiers. DEA clients
may also generally only trade for their own accounts.
According to the CSA, a consistent framework for the
offering and use of DEA "reduces the risk of
arbitrage among participant dealers providing DEA and also among
marketplaces that have differing DEA standards or
requirements." As the final amendments are considered
substantially similar to the initial proposals, no further comment
period is required. Assuming ministerial approvals are obtained,
the amendments are set to come into force on March 1, 2014.
Industry Regulatory Organization of Canada today also announced
amendments to UMIR and Dealer Member
Rules to complement the CSA amendments. Specifically, the
UMIR amendments are intended to address the other identified
types of electronic access to marketplaces provided to third
parties, such as in respect of routing arrangements and order
execution services. IIROC also issued guidance to provide examples relating
to the requirements for order identification and designation and to
highlight specific changes respecting order execution services,
direct access and routing arrangements. For more information, see
IIROC Notices 13-0184 and 13-0185.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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